Snapshot: succession law in Saudi Arabia

Succession

What property constitutes an individual’s estate for succession purposes?

In Saudi Arabia, an individual's estate for succession purposes is determined by Islamic law, specifically the principles of Shari’a. According to Shari’a, the estate includes the assets and liabilities left behind by a deceased person. Here are some key components that constitute an individual's estate for succession purposes in Saudi Arabia:

• real estate: this includes any land, buildings or property owned by the deceased person, such as houses, apartments or commercial properties;
• financial assets: this includes cash, bank accounts, investments, stocks, bonds and any other financial instruments owned by the deceased person;
• personal belongings: this includes personal items such as vehicles, jewellery, furniture, electronics and other possessions owned by the deceased person;
• business interests: if the deceased person owned a business or had shares in a company, those business interests are considered part of the estate; and
• debts and liabilities: any outstanding debts, loans or liabilities owed by the deceased person are subtracted from the estate's value.

Under Shari’a law, there are specific rules governing the distribution of the estate. In Saudi Arabia, the distribution of assets is generally based on the principles of Islamic inheritance, which prescribe fixed shares for specific heirs, such as spouses, children, parents and other relatives. The exact distribution and inheritance shares depend on the specific circumstances and the relationship of the heirs to the deceased person.

To what extent do individuals have freedom of disposition over their estate during their lifetime?

According to Saudi Arabian rules and regulations, individuals have a certain degree of freedom of disposition over their assets during their lifetime. Shari’a provides specific rules and principles regarding inheritance, which may limit the freedom of disposition over assets. These rules are primarily based on established Islamic principles and are designed to ensure the fair distribution of wealth among family members. In general, male heirs are entitled to a larger share of the inheritance compared to female heirs, and specific shares are allocated to different categories of family members. While individuals in Saudi Arabia have the ability to manage and dispose of their assets during their lifetime, they may need to consider the eventual distribution of their wealth according to the rules of Shari’a law. It is common for individuals to prepare wills or engage in estate planning to ensure that their assets are distributed according to their wishes, within the framework of Shari’a law.

To what extent do individuals have freedom of disposition over their estate on death?

The freedom of disposition over one's estate on death of an individual in Saudi Arabia is subject to certain restrictions and is governed by Islamic law, which is derived from the Quran and the teachings of the Prophet Muhammad (peace be upon him). Under Shari’a law, there are specific rules regarding the distribution of a deceased person's estate, and these rules generally take precedence over the individual's testamentary wishes. The heirs in Islamic law are categorised into different classes, including parents, spouses, children and other relatives. Each category has a specific share of the estate, known as a ‘prescribed share’, which is determined based on their relationship to the deceased and the presence of other heirs. These prescribed shares are mandatory and cannot be overridden by a will or testamentary disposition.

However, within the framework of Islamic law, individuals do have some freedom to dispose of a portion of their estate through a valid will. This portion is known as the ‘optional share’ or ‘discretionary bequest’. The optional share can be allocated to individuals or causes that are not among the prescribed heirs, such as charities or non-family members. Note that the discretionary bequest should not exceed one-third of the estate's value. If the bequest exceeds this limit, it can be subject to reduction or alteration by the Shari’a court to ensure the prescribed heirs receive their rightful shares.

If an individual dies in your jurisdiction without leaving valid instructions for the disposition of the estate, to whom does the estate pass and in what shares?

In Saudi Arabia, if an individual dies without leaving valid instructions for the disposition of their estate, the distribution of the estate is governed by the Shari’a law principles (as recognised in Saudi Arabia) of inheritance which provides specific rules on how the estate should be distributed among the deceased's heirs. Under Shari’a law, the estate will typically be distributed among the deceased's immediate family members, including their spouse(s), children, parents, and siblings in predefined shares. The specific shares depend on the individual's family composition and the presence of other eligible heirs.

The general distribution of shares under Shari’a law is as follows:

• spouse: the surviving spouse is entitled to a portion of the estate, depending on the presence of other eligible heirs. The share varies between one-fourth (if the deceased has children or their descendants) and one-half (if the deceased has no children or their descendants);
• children: the children, both male and female, are entitled to inherit from the estate. The sons generally receive twice the share of the daughters. If the deceased has no children, their descendants (such as grandchildren) may be eligible to inherit;
• parents: if the deceased has no children or spouse, their parents are entitled to inherit from the estate; and
• siblings: If the deceased has no children, spouse or parents, their siblings may be eligible to inherit a share of the estate.

In relation to the disposition of an individual’s estate, are adopted or illegitimate children treated the same as natural legitimate children and, if not, how may they inherit?

Adoption is allowed in Saudi Arabia, but with certain restrictions and conditions. However, it is not considered the same as biological parenthood, and adopted children do not have the same legal status as biological children. Under Saudi rules the adopted child does not acquire the guardian's family name or inheritance rights, and the guardian does not have the same legal relationship with the child as a biological parent.

The concept of adoption in Saudi Arabia is primarily intended to provide care for orphaned children or those without biological parents who are capable of caring for them.

What law governs the distribution of an individual’s estate and does this depend on the type of property within it?

Pursuant to Saudi Arabian rules the distribution of the estate of a deceased person is governed by Shari’a. Under Shari’a, the distribution of the deceased person's estate is governed by a set of rules that determine the shares of inheritance for different family members. These rules prioritise the rights of specific individuals, such as spouses, children, parents and other close relatives. The specific shares and distribution depend on the familial relationships and the presence or absence of certain family members.

What formalities are required for an individual to make a valid will in your jurisdiction?

To make a valid will following formalities must be considered:

• age and capacity: the person making the will (testator) must be at least 21 years old and of sound mind at the time of creating the will;
• written form: the will must be in writing. Oral wills (nuncupative wills) are generally not recognised in Saudi Arabia;
• witnesses: two adult Muslim witnesses are required to witness the signing of the will by the testator. The witnesses must not be beneficiaries or heirs mentioned in the will;
• notary public: it is advisable to have the will notarised by a notary public or an authorised legal authority. This can help establish the authenticity of the will and prevent potential disputes;
• clear intentions: the will should clearly express the testator's wishes regarding the distribution of assets and appointment of an executor (wasi);
• Shari’a compliance: the will should not contradict the principles of Shari’a inheritance rules. A person cannot distribute more than one-third of their estate through a will, as the remaining two-thirds are typically reserved for specific heirs under Shari’a law; and
• registration: it is recommended to register the will with the Saudi Arabian Ministry of Justice or a competent authority.

Are foreign wills recognised in your jurisdiction and how is this achieved?

The recognition of foreign wills in Saudi Arabia can be a complex issue, and it depends on various factors, including the nationality of the deceased, the jurisdiction in which the will was made and the content of the will. In general, for non-Muslim expatriates living in Saudi Arabia, their wills may be recognised if they comply with Saudi law and are properly executed in accordance with the requirements of their home country. However, the application and enforcement of foreign wills in Saudi Arabia can be subject to interpretation and the discretionary powers of the judge.

Who has the right to administer an estate?

In Saudi Arabia, the administration of an estate is typically handled by a legal representative or executor who is appointed according to the deceased person's will or by the court if there is no will.

According to Saudi Arabian rules, the appointment of an executor or administrator is subject to the approval of the Shari’a court, and the Shari’a court may appoint a suitable person if there is no explicit nomination in the will or if the nominated person is unable or unwilling to act.

How does title to a deceased’s assets pass to the heirs and successors? What are the rules for administration of the estate?

The administration of the estate follows a legal process known as ‘inheritance distribution’ or ‘estate settlement’. Here are some key points regarding the rules for the administration of an estate in Saudi Arabia:

• Application for estate distribution: after the death of an individual, the heirs or their representatives must initiate the process by filing an application for estate distribution at the competent court.
• Shari’a court: in Saudi Arabia, the courts follow Shari’a law for inheritance matters. The Shari’a court examines the application, reviews relevant documents and determines the legal heirs based on Islamic inheritance rules.
• Islamic inheritance rules: Islamic law provides guidelines for the distribution of assets among the heirs. These rules specify the shares of inheritance for different categories of heirs, such as spouses, children, parents and other relatives. The shares are determined based on the relationship to the deceased and the gender of the heirs.
• Executor or administrator: the court may appoint an executor or administrator to oversee the estate administration process. This person is responsible for managing the assets, paying off debts and distributing the remaining assets to the rightful heirs according to the court's decision.
• Estate inventory and valuation: the executor or administrator is required to prepare an inventory of the deceased's assets, including real estate, bank accounts, investments and personal property. The assets are then valued to determine their worth at the time of distribution.
• Debts and liabilities: before the distribution of assets, the executor or administrator must settle any outstanding debts and liabilities of the deceased. This includes payment of funeral expenses, outstanding bills and any other debts owed by the deceased.
• Distribution of assets: once all debts and liabilities have been settled, the remaining assets are distributed among the heirs according to the court's decision. The distribution is based on the Islamic inheritance rules, and each heir receives their prescribed share.

The specific process and requirements for estate administration may vary depending on the circumstances and the Shari’a court's interpretation and application of the law.

Is there a procedure for disappointed heirs and/or beneficiaries to make a claim against an estate?

The process for disappointed heirs to raise a claim against an estate involves the following procedures:

• Gather evidence: collect all necessary documents and evidence to support your claim, such as the deceased person's will (if any), death certificate, family tree and any other relevant documents that establish your relationship to the deceased and your entitlement to the inheritance.
• Consult an attorney: engage the services of a competent attorney who specialises in Saudi Arabian inheritance laws. They will provide you with personalised advice and guide you through the legal process.
• Initiate legal proceedings: your attorney will help you file a claim or a lawsuit with the relevant court. The specific court will depend on the value of the estate and the jurisdiction in which the deceased resided. The court will evaluate your claim and make a determination based on the evidence presented.
• Mediation and negotiation: in some cases, the court may encourage mediation or negotiation between the parties involved to reach a settlement. This process aims to resolve the dispute amicably and avoid lengthy court proceedings.
• Court decision: if a settlement cannot be reached, the court will proceed with the litigation. The court will examine the evidence, hear arguments from both sides and make a decision based on the applicable laws and Islamic inheritance principles.
• Appeal process: if either party is dissatisfied with the court's decision, they can appeal to a higher court within a specified timeframe. The appellate court will review the case and may uphold, modify or overturn the lower court's decision.